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Inside the Minds of Real Estate Millennials Anaheim Convention Center October 5, 2010

Inside the Minds of Real Estate Millennials Anaheim Convention Center October 5, 2010. Joel Singer Executive Vice President CALIFORNIA ASSOCIATION OF REALTORS®. Who Are Millennials?. “Millennial” Profile. a.k.a. “Generation Y” or “Echo Boomers” “Peter Pan Generation”

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Inside the Minds of Real Estate Millennials Anaheim Convention Center October 5, 2010

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  1. Inside the Minds of Real Estate Millennials Anaheim Convention Center October 5, 2010 Joel Singer Executive Vice President CALIFORNIA ASSOCIATION OF REALTORS®

  2. Who Are Millennials?

  3. “Millennial” Profile a.k.a. “Generation Y” or “Echo Boomers” “Peter Pan Generation” Delayed transition into adulthood Born circa 1980 and before 2000 Children of Baby Boomers 10% unemployed Top priorities: Being a good parent (52%) Having a successful marriage (30%) Helping others in need (21%) Source: Pew Research Center, Wikipedia, compiled by C.A.R.

  4. Demographics - 45.8 Million People (U.S.) - Source: Pew Research Center – Millennial: A Portrait of Generation Next (2010)

  5. Demographics - 6.3 Million People (California) - Source: California Department of Finance 2010

  6. Describing Millennials Confident Tech savvy 75% have profile on social networking site (compared to 50% of Gen X, and 30% of Baby Boomers) 88% text on cell phone (compared to 77% of Gen X, and 51% of Baby Boomers) Educated 15% of males have 4 years of college or more (compared to 13% of Gen X, and 13% of Baby Boomers) 20% of females have 4 years of college or more (compared to 15% of Gen X, and 11% of Baby Boomers) Multi-taskers Open minded Source: Pew Research Center, compiled by C.A.R.

  7. Defining Events 9/11 Economic Crises Dot com bubble Housing bubble Great recession Iraq War Afghanistan War The internet Mobile technology Social media

  8. The Next Generation Client:Home Buyers & Sellers of Today

  9. Age • Buyers & Sellers Buyers All buyers: 37 First time buyers: 30 Repeat buyers: 44 Sellers All sellers: 41 First time sellers: 39 Repeat sellers: 43

  10. Percent of First-Time Buyers & Sellers Q. Was this your first home purchase/sale?

  11. Internet Use in Transaction Source: C.A.R. 2005 Internet Versus Traditional Buyer Survey and C.A.R. 2006 California Home Seller Survey

  12. How Real Estate Clients Use the Internet- Top 3 Activities - • Buyers • Preview homes (74%) • Find agent (70%) • ID homes to view with agent (63%) • Millennial Buyers • Preview homes (74%) • Find agent (69%) • ID homes to view with agent (63%) • Sellers • Research comparable prices (81%) • Updates on neighborhood sales (51%) • Find agent (42%) • Millennial Sellers • Research comparable prices (67%) • Updates on neighborhood sales (46%) • Find agent (40%)

  13. Over Half of Millennial Clients Found Their Agents On the Internet

  14. Consumer Attitude Towards Homeownership Desirability 67% believe buying a home is a safe investment (down 16% from 2003) Renting vs. Owning 63% of renters would rather rent than buy 83% of renters believe owning requires financial sacrifice 54% of renters believe a home is a safe investment Financing 54% believe it would be difficult to get a loan Delinquency 19% know someone who has strategically defaulted 17% believe financial distress makes it acceptable to stop making mortgage payments Source: Fannie Mae – National Housing Survey (September 2010)

  15. Are REALTORS® Keeping Up With Their Millennial Clients?

  16. Over Half of All Transactions Started on the Internet Q: What percentage of your real estate transactions in the past 12 months originated with an Internet contact?

  17. Portable Computers More Widely UsedLaptop, Tablet or iPad Q: Do you use your laptop computer or tablet computer when you conduct residential real estate business in the field?

  18. REALTORS® Going Wireless Have a Smart Phone for their residential real estate business Q: Do you have a Smart phone (e.g. Blackberry/Treo, etc.) for your residential real estate business?

  19. Top Ten Mobile Applications Q: Which mobile applications do you utilize on your smart phone?

  20. Social Networking Sites Becoming More Popular Among Agents Q: Which social networking websites do you use in your real estate business?

  21. REALTORS® With Smart Phone Responded More Promptly to Clients Q: How often do you answer emails from clients? Q: What is your average response time to e-mails from clients?

  22. Some Words of Wisdom

  23. Buyers’ Advice to Agents on How to Improve Service to Clients • Negotiate more aggressively (56%) • Improve communication speed (31%) • Provide lender references (28%) • Improve knowledge of handling distressed property transactions (22%) • Provide quality real estate market data (17%)

  24. Buyers’ Advice to Agents on How to Improve Service to Clients • Find listings before clients do so (11%) • Improve quality of communications (11%) • Listen to clients’ needs better (10%) • Pre-qualify homes before showing them (9%) • Provide forecast information on interest rates (6%) Thank You!

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